Which of the Following Is an Example of Crowding-Out

question 162

Multiple Choice

Which of the following is an example of crowding-out?

• A) The government invests in education,shifting the long-run aggregate supply curve to the right.
• B) The government lowers taxes,but spending does not increase.
• C) The government increases spending but does not increase taxes,and the size of the deficit increases.
• D) The government adopts a balanced budget amendment.
• E) The government pays $2 million to workers who have lost their jobs in the form of unemployment compensation.

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Definitions:

Percent

A means of expressing a number as a fraction of 100.

Richest 1 Percent

The segment of the population that holds a disproportionally large share of a country's wealth, often used in discussions on inequality.

World Population

The total number of humans currently living on Earth, often estimated and analyzed for trends in growth, distribution, and demographic changes.

Earnings

Earnings represent the amount of money that an individual or company receives in return for labor, services, or investment, often measured over a specific period.